Lifeway Foods Q3 Earnings Overview
Lifeway Foods, Inc. (NASDAQ:LWAY) posted third‑quarter results that fell short of analyst expectations despite achieving a record top‑line. Adjusted earnings per share were $0.02, missing the consensus estimate of $0.06 by $0.04. Net income for the quarter was $0.3 million, or $0.02 per share, compared with $3.5 million, or $0.23 per share, in the same quarter a year earlier.
Revenue climbed to $67.8 million, representing an 18.6% year‑over‑year increase from $57.1 million and marginally surpassing the $66.83 million forecast. The company highlighted that this marks the 28th consecutive quarter of revenue growth.
Gross profit margin contracted sharply to 18.0% from 28.7% in the prior‑year period, reflecting elevated input costs such as milk, resin‑based packaging, ingredients, and transportation. Selling, general and administrative expenses improved, falling to 16.2% of net sales from 19.6% a year earlier.
President and Chief Executive Officer Julie Smolyansky said the quarter demonstrated “another record‑breaking quarter” driven by volume‑led growth of Lifeway Kefir and Lifeway Farmer Cheese, underscoring strong consumer trust and retailer support.
Looking ahead, Lifeway warned that cost pressures are expected to persist into the fourth quarter. However, the company anticipates gross‑margin expansion and improved profitability in 2027, supported by planned price increases across its portfolio that will be implemented on a rolling basis through year‑end and into the first quarter of 2027. Additionally, the scale‑up of its Waukesha, Wisconsin, facility—scheduled for completion in early 2027—is projected to remove existing capacity constraints.
Year‑to‑date net sales reached $197.7 million, up 25.8% year‑over‑year.